Less than two years after it first hit the skies, Canada Jetlines has grounded its planes and ceased operations amid a cash crisis that caused it to become the third Canadian carrier in less than a year to stop flying.
The low-cost airline, which flew mainly to sun destinations out of Toronto on top of leases and charter trips, said Thursday it failed to find the capital needed to stay afloat and planned to file for creditor protection.
Passengers with existing bookings should contact their credit card company to secure refunds, the company said."Every effort is being made to assist passengers at this time."The shutdown follows the resignation of four board members on Monday, including chairwoman and CEO Brigitte Goersch. "Every time a new player wants to enter the market, there's only one certainty: they're going to be losing money for the first eight, nine, 10 months at least, and perhaps even more. So you need a good bank account," said Roy, noting that leisure travellers are particularly price-sensitive.
Thursday's halt leaves only one budget carrier left in Canada — Flair Airlines — alongside the other major players: Air Canada, WestJet, Porter Airlines, Air Transat and the WestJet-owned Sunwing Airlines. In October 2019, the Mississauga, Ont.-based company announced it was postponing its planned December launch and laying off most employees after failing to secure the required financing and losing investment partners. The delay wound up dragging on for nearly three years, thanks in part to the COVID-19 pandemic.
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